Puerto Rico in Distress

ABI Analysis

The federal board overseeing Puerto Rico’s bankruptcy agreed Thursday to drop its opposition to legislation enacted earlier this week authorizing the island to raise new debt needed to complete its debt restructuring plan, WSJ Pro Bankruptcy reported. The disagreement between the oversight board and the U.S.

Puerto Rico Gov. Pedro Pierluisi (D) signed a bill on Tuesday intended to decrease the territory’s debt by half, but critics fear it could result in harsh austerity measures, The Hill reported.

Puerto Rico’s Senate and House approved a bill Tuesday that would slash the central government’s debt by half but has also sparked protests and led to fiery exchanges between lawmakers and a federal control board that oversees the U.S. territory’s finances, the Associated Press reported.

The judge overseeing Puerto Rico’s bankruptcy said confirmation hearings set for November on the territory’s debt restructuring plan will remain in place, even after the island’s Senate last week failed to pass a key piece of legislation needed to finalize the plan, WSJ Pro Bankruptcy reported. Judge Laura Taylor Swain at a virtual hearing yesterday in the U.S.

Other Resources

The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.